Hinkley gets the Go Ahead……

Finally some good news on the horizon for the UK’s civil nuclear power generation programme.  Following the disappointments after the withdrawal of German interest in the new build agenda, step forward the rural county of Somerset to put things right.

After more than three years of negotiation, a major obstacle to the construction of a new nuclear reactor on the site at Hinkley Point in Somerset was overcome after the local authorities involved dropped their opposition to the scheme.  French utility company EDF Energy has promised to contribute over £64 million to the local economy, to improve educational facilities in Somerset, community centres as well as allowing the construction of housing.  Spending plans will be presented by the company before the end of the year.

The real estate and commercial property implications are significant, with construction costs on the reactor facility alone expected to be in the region of £7 billion.  Additionally, there will be significant knock on effects in the locality, with related and other support services.

This is not, however, the signal for the first spade to be put in the ground.  Despite the fact that the generating capacity of the UK remains in perilous state, with the much discussed date of December 2017 looming there are plenty of considerations yet to be defined.

As well as convincing the nuclear regulator to grant a nuclear site license, EDF will require to obtain the necessary environmental permit together with approval for the design of the intended reactor, and there’s the small matter of the planning inspectorate.  The Energy Secretary will have to approve their overall finance plan and, to cap it all there will have to be approval of the intended charging structure for the energy produced.

There are a profusion of alternate, energy producing schemes in process in the UK, all of which have a place in the energy generating mix.  This important step in the development of the power generating agenda moves the UK a step closer to keeping the lights on.

Government Property Unit under the microscope

Some interesting commentary this week on the subject of the Government land and built estate ownership and occupation.  The cross party Publlic Accounts Committee, chaired by the Rt.Hon Margaret Hodge, has published a report recommending that improvements in building occupancy should be achieved, that unoccupied buildings should be made available to mall businesses to rent and that the Government should continue to realise value from built assets i.e. sell surplus real estate.

The drive is to save the UK tax payer in excess of £800 million per year in operating costs and to realise capital receipts.  Last year the Government Property Unit achieved sales on over 250 freehold assets, realising £640million of cash for the coffers.  In addition to this, co-sharing and more efficient usage of space and facilities has saved over £48 million, GPU claim.

The Government is the UK’s biggest property owner and also the biggest tenant.  Staggeringly, the property portfolio is worth in the region of £370 billion (even in this market?!) and costs £25 billion a year to run.  A Cabinet Office spokesperson has said that the recommendations will be considered carefully and the potential for savings taken into account with those savings already achieved.

James Alexander can help your organisation review your property and land portfolio and develop strategies for better usage and utilisation, as well as determining strategies for asset divestment, or acquisition.  Get in touch and see how we could help.  innovation@jaltd.co.uk

Cameron & Osborne step into the planning breach.

Just days after our last update on the planning situation Prime Minister Cameron steps forward to introduce clarity where once there was dithering..…..

With Mr Osborne, who is the Conservative Party’s chief election strategist, further reforms to planning rules are proposed to promote growth in the economy.  The new legislation is expected to provide for less time for appeals by limiting local residents’ abilities to appeal and, most controversially, to allow council to authorise building on the green belt, by redesignating other areas, thereby providing more land in the previously sacrosanct green belt for new build projects.  With sparkling insight, Mr Osborne has indicated that he would like a planning system similar to that in China, where industrial pollution, degradation of the countryside and an appalling health and safety record are the watchword.

These reforms form part of the Government’s financial package of £40 billion to aid and promote growth.

House builders in the UK currently hold in excess of 200,000 plots for development with planning permission.  Why are these not being built on?  Could it be anything to do with the lack of availability of mortgages and funding?  I wonder.  Rather than meddle with planning reforms that have barely had a chance to bed in and start to take effect, perhaps Mr Osborne could sit down at Gregg’s with some of his banking friends and ask if they would be kind enough to let the UK taxpayer have some of the money the Government provided for bonuses to allow house building to get moving.

Just a thought.